Vonage looking to Sprint as savior?
updated 11:25 am EDT, Tue April 17, 2007
Vonage Looks to Sprint
Vonage may turn to Sprint in an attempt to save itself from disaster, sources claim. The voice-over-Internet phone company is allegedly willing to accept a buyout from the larger provider in a last-minute bid to get its way out of a near-fatal patent ruling in favor of Verizon last month that would effectively block Vonage from operating on the American rival's network due to patent disputes. A Sprint buyout of Vonage would let the former get a jumpstart on VoIP phone service and give the latter a much needed influx of cash, the sources claimed.
Although neither Sprint nor its potential partner have discussed the issue directly, Vonage has already indicated that it would be willing to explore deals and was especially willing to talk to Sprint over a less-publicized patent argument between the two.
"I feel very strongly we'll be able to enter into a business arrangement or agreement to resolve that matter," said Vonage's chief legal officer Sharon O'Leary about its troubles with Sprint.
Sprint has not suggested a deal itself but may be interested as of April 24th, when Vonage will hear from a judge whether or not a temporary stay that lets it operate as usual becomes a permanent decision. A deal would be in the works within three months if the decision isn't in favor of Vonage, according to the source. [via Light Reading]
